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Data Centers in Nairobi

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Nairobi – East Africa's Digital Gateway

Nairobi is the primary data center and interconnection hub for East Africa. For businesses targeting Kenya and the surrounding region, collocating here provides the best possible performance and access to a growing ecosystem of networks and enterprises. The market's combination of improving connectivity and favorable power sources makes it the strategic entry point for digital services in East Africa.

Nairobi: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBStrong regional hub; international connectivity is improving but lacks direct hyperscale cloud access.
Direct Cloud On-Ramps0 – as of September 2025Access is achieved via network extensions to major European or Middle Eastern hubs.
Power Cost$0.12/kWh – as of September 2025Highly favorable, with a grid dominated by renewable energy sources like geothermal.
Disaster RiskHigh (6/10) – as of September 2025Overall risk is driven by drought, flood, and socio-economic factors.
Tax IncentivesYesGeneral VAT exemptions on specific equipment and services reduce capital expenditures.
Sales Tax16% VAT – as of September 2025This is the standard Value Added Tax rate for goods and services.

Network & Connectivity Ecosystem

Nairobi’s connectivity ecosystem is the most developed in East Africa, serving as the region's main traffic aggregation point.

Carrier Density & Carrier Neutrality: The market features over 12 network providers as of September 2025. Carrier-neutral facilities provide access to the leading local and international carriers, ensuring competitive pricing and network resilience.

Direct Cloud On-Ramps: There are no direct hyperscale cloud on-ramps within Nairobi as of September 2025, and there are 0 cloud regions locally. Access to major cloud providers requires dedicated network connections to hubs in Europe, such as Marseille, or the Middle East.

Internet Exchange Points (IXPs): The Kenya Internet Exchange Point (KIXP) is central to the market, keeping local traffic within the country to dramatically reduce latency for Kenyan users.

Bare Metal: Bare metal server options are available from multiple providers. Global suppliers like Hivelocity and phoenixNAP can serve the market, providing dedicated compute resources for performance-sensitive applications.

Power Analysis

Kenya's power infrastructure offers a unique combination of cost-effectiveness and a high proportion of renewable energy.

Average Cost Of Power: Industrial power costs average $0.12/kWh as of September 2025. This competitive pricing, combined with a green energy mix, lowers operational costs and helps meet sustainability goals.

Power Grid Reliability: The national grid has a high reliance on renewables, with approximately 90% of energy from geothermal, hydro, and wind sources. Data centers in Nairobi's key commercial districts are supported by well-engineered infrastructure and significant on-site redundancy to ensure consistent uptime.

Market Access, Business & Tax Climate

Nairobi is the undisputed economic engine of East Africa, offering unmatched access to a large and growing consumer and business market.

Proximity To Key Business Districts: Data centers in Nairobi are strategically located to serve the central business district and the burgeoning tech scene often referred to as Silicon Savannah. This proximity ensures low-latency connectivity for financial services, media, and technology companies.

Regional Market Reach: From Nairobi, businesses can effectively serve a population of over 150 million people across Kenya, Uganda, Tanzania, Rwanda, and Ethiopia. Its position as a logistics and communications hub makes it the ideal location for a regional digital headquarters.

Tax Advantage For Data Centers: Kenya offers tax incentives that can significantly lower the cost of deploying data center infrastructure. The government provides Value Added Tax (VAT) exemptions on specific IT equipment, which reduces the initial capital investment required to establish a presence.

Natural Disaster Risk

Kenya has a high overall risk profile, rated 6 out of 10 by INFORM as of September 2025. The risk is primarily driven by the country's vulnerability and lack of coping capacity rather than extreme natural hazard exposure alone.

Key natural hazards for the region include:

  • Drought: The most significant environmental threat, with a risk score of 6.7.
  • Epidemic: A high-impact risk with a score of 6.4.
  • River Flood: A moderate risk rated at 5.1, primarily affecting specific regions.
  • Earthquake: A lower but present risk with a score of 2.8.
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